Technological entrepreneurship and venture capital

legal foundations of innovative companies in Brazil

Abstract

This study examines the legal framework governing startups within Brazilian Business Law, with particular emphasis on the regulatory mechanisms of Complementary Law No. 182 of June 1, 2021, known as the Legal Framework for Startups and Innovative Entrepreneurship. Initially, the research seeks to define the legal configuration of these organizations and to identify the elements that characterize the model in the digital and technological economy. Subsequently, the study analyzes instruments designed to promote entrepreneurship and expand funding sources for emerging companies. The research problem consists of determining whether, based on the legislation, it is possible to systematize financing mechanisms for innovative enterprises, as well as examining the normative structure responsible for governing such investments in Brazilian law. To achieve this, the deductive method is adopted, with a descriptive and explanatory approach grounded in specialized national and international literature and relevant legislation. Throughout the work, financing forms are examined, such as bootstrapping, contributions from family and friends, angel investors, seed capital funds, venture capital, private equity, crowdfunding, and IPOs, alongside exit mechanisms. The Public Contract for Innovative Solutions is also analyzed, an instrument of Complementary Law No. 182/2021 to enable Public Administration contracting of technological solutions. The study concludes that the regulatory framework represents an important advancement in building a legal environment conducive to innovation, technological investment, and the strengthening of the Brazilian entrepreneurial ecosystem.